Deep Water Financial of Duluth, Minnesota, has asked you to evaluate the stock price growth for a portfolio containing the following firms: General Motors, International Business Machines, Potlatch, Inc., Sea Containers, Ltd., and Tata Communications. Compute the means, variances, and covariance’s for the stocks. Using the data file Stock Price File, compute the mean and variance for a portfolio that represents the five stocks equally. Second, modify the portfolio by removing Potlatch and Sea Containers and including in the portfolio 40% General Motors, 30% International Business Machines, and 30% Tata Communications. Determine the mean and variance for the second portfolio and compare it with the first.

  • CreatedJuly 07, 2015
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